12 General Approach to Job CostingStep 3:The cost allocation base is machine-hours.Job 650 used 500 machine-hours.2,480 machine-hours were used by all jobs.Step 4:Manufacturing overhead costs were $65,100.

18 Costing Systems Actual costing is a system that uses actualcosts to determine the cost of individual jobs.It allocates indirect costs based on the actualindirect-cost rate(s) times the actual quantityof the cost-allocation base(s).

19 Costing Systems Normal costing is a method that allocatesindirect costs based on the budgetedindirect-cost rate(s) times the actualquantity of the cost allocation base(s).

25 Transactions Materials costing $75,000 were sent to themanufacturing plant floor.$50,000 were issued to Job No. 650 and$10,000 to Job 651.$15,000 of indirect materials were issued.What is the journal entry?

28 Transactions Total manufacturing payroll for the period was $27,000.Job No. 650 incurred direct labor costsof $19,000 and Job No. 651 incurreddirect labor costs of $3,000.$5,000 of indirect labor was also incurred.What is the journal entry?

32 Transactions Assume that depreciation for the period is $26,000.Other manufacturing overheadincurred amounted to $19,100.What is the journal entry?

33 Transactions Manufacturing Overhead Control 45,100Accumulated DepreciationControl ,000Various Accounts ,100What is the balance of the ManufacturingOverhead Control account?

34 Transactions $62,000 of overhead was allocated to thevarious jobs of which $12,500 went to Job 650.Work in Process Control 62,000Manufacturing Overhead Control 62,000What are the balances of the control accounts?

51 Proration Approach Basis to prorate under- or overallocated overhead:– total amount of manufacturing overheadallocated (before proration)– ending balances of Work in Process, FinishedGoods, and Cost of Goods Sold